Isn't Hyundai making a mistake in choosing Equus dealerships?

[ultra63]

In the Tampa Bay area Hyundai's 2 Equus dealerships are nowhere near high income areas or in Tampa or St Pete or Clearwater. They are in lower income more rural areas where locals buy Hyundais because they are cheap cars. I know Hyundai has to reward its high volume dealers but they have no dealerships near the buyers of MB's, BMW's, Lexus et al who the target market for the Hyundai Equus.

 

[Akin67]

I am noticing that many Hyundai dealerships are remodeling and moving into nicer showrooms. I think they need to do that as some existing dealers have a lot to be desired.

Despite this effort I still believe that they will eventually need to move the Genesis and Equus into dedicated luxury showrooms. I don't think you can sell a $65,000 alongside $15,000 cars. However, when that happens, we can expect to pay a great deal more for service. So let's enjoy a great luxury car with a family car cost while it lasts.

 

[Sal Collaziano]

Keep in mind that Chevy sells $100k+ Corvettes next to Chevy Aveos...

 

[MrB0462]

Keep in mind that Chevy sells $100k+ Corvettes next to Chevy Aveos...

While that is true the ZR1 owners, Z06 owners, etc. do not like the service levels they receive. It creates major problems in two areas; lack of appropriate waiting areas and a person spending much more than a Aveo owner receives the same level of service because Chevrolet/GM are afraid to offend the Aveo customer.

They have even thought of moving Covette sales and service to Cadillac dealers because of the issues.

 

[Sal Collaziano]

While that is true the ZR1 owners, Z06 owners, etc. do not like the service levels they receive. It creates major problems in two areas; lack of appropriate waiting areas and a person spending much more than a Aveo owner receives the same level of service because Chevrolet/GM are afraid to offend the Aveo customer.

They have even thought of moving Covette sales and service to Cadillac dealers because of the issues.

All true but Hyundai doesn't have an automobile near $100k just yet. The Equus and Genesis do need their own brand. However, I think they'll do fine under the Hyundai brand for now.

Hyundai isn't going all out with the Equus like I thought they would. Power is down, rear seat legroom is down (no LWB here in America) and some other things are not up to par - not enough to draw many customers from other brands. It's priced too closely with the Lexus LS. It's fine for now as a Hyundai. If and when Hyundai creates a luxury brand, they'd better be ready to give it their all...

 

[sandy]

According to the GM at my Hyundai dealership, the plan near-term is to further extend the line to include a luxury SUV.

 

[Chief]

My understanding is that the dealer has to have a separate Hyundai show room in order to get any Equus vehicles. If they have a combination brand show room they will not get the cars.

 

[hyundaisvcdirector]

Being an Equus dealership I would like to share a little info with everyone.

First of all you must have a stand alone Hyundai dealership to be considered for an Equus dealership.

Then Hyundai looks at your current ability to sell new Genesis cars. My dealership has been # 1 in Tennessee for new Hyundai sales for the last 6 months. You must be moving the Genesis cars for Hyundai or you cannot obtain an Equus dealership. Hyundai doesn't care how much money you have, so money is not a determining factor.

You must be willing to make the improvements requested which are averaging 80-100k!

You must be willing to pick up and deliver the Equus to a customer for a sales demonstration and at each service request should a customer request it. Hyundai has agreed to pay the dealer for all service pick ups and delivery because of the price placed on the Equus.

Hyundai only expects to sell around 2000-3000 their first year so the car will be hard to get/obtain. Full sticker price and maybe more will probably be the norm. We already have substantial deposits down and have been told to expect two or three cars a month. They will be very RARE!

 

[waveman]

Being an Equus dealership I would like to share a little info with everyone.

You must be willing to make the improvements requested which are averaging 80-100k!

You must be willing to pick up and deliver the Equus to a customer for a sales demonstration and at each service request should a customer request it. Hyundai has agreed to pay the dealer for all service pick ups and delivery because of the price placed on the Equus.

Hyundai only expects to sell around 2000-3000 their first year so the car will be hard to get/obtain. Full sticker price and maybe more will probably be the norm. We already have substantial deposits down and have been told to expect two or three cars a month. They will be very RARE!

My dealer also told me that they were going to make substantial improvements to their facilities for the Equus. My question is whether they'll continue to sell the Genesis alongside Hyundai's other vehicles. I think that it would be good to show and sell the Genesis in the same upgraded areas as the Equus. That would also make sense if many customer interactions for the Equus will take place away from the dealership.

 

[MrB0462]

With all due respect $ 80-100,000 investment is small change as opposed to erecting completely new facility that would befit the status of Equus with Genesis thrown in.

Just think back to how Lexus/Infinity were established. Yes I recognize that the goal for Equus is not that large they still need to present an upscale image. Current dealership facilities for the most part will not cut it.

An Equus owner will eventually show up at a dealership and be treated like a Sonata customer.

Ford had similar issues with the Ford GT ( $ 170,000 or so list price).

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[waveman]

With all due respect $ 80-100,000 investment is small change as opposed to erecting completely new facility that would befit the status of Equus with Genesis thrown in.

Just think back to how Lexus/Infinity were established. Yes I recognize that the goal for Equus is not that large they still need to present an upscale image. Current dealership facilities for the most part will not cut it.

An Equus owner will eventually show up at a dealership and be treated like a Sonata customer.

Ford had similar issues with the Ford GT ( $ 170,000 or so list price).

I agree. Hyundai has to walk the line between investing a ton of capital to essentially start a new company for a car that may not be successful on one hand, and simply selling the Equus alongside the Sonata and possibly decreasing its chances of success on the other.

Setting up special organizations and facilities within selected Hyundai dealerships is a middle of the road approach that may work. Bringing Genesis into the mix would be a smart move, I think, because current Genesis owners will be more likely to consider the Equus when it's time to move up if they've been well-treated on that side of the dealership.

 

[ultra63]

I was at one of the 2 Equus dealers in my area this weekend. Not the slightest sign of any area in the cramped showroom of an Equus area.

 

[Aroundiv776]

I am noticing that many Hyundai dealerships are remodeling and moving into nicer showrooms. I think they need to do that as some existing dealers have a lot to be desired.

Despite this effort I still believe that they will eventually need to move the Genesis and Equus into dedicated luxury showrooms. I hid headlight kits don't think you can sell a $65,000 alongside $15,000 cars. However, when that happens, we can expect to pay a great deal more for service. So let's enjoy a great luxury car with a family car cost while it lasts.

I don't believe that's true. If the car looks better and offers more then the higher price will seem reasonable to consumers. A nice car alongside an ugly car can sell for more because it looks better and is more appealing.

 

[Billymax]

As a new Equus owner and busy business owner the real draw after the car over the other high end vehicles was the service program! You doth even Ned to vista a dealer to buy let alone set in a service lounge waiting for you oil change! Who has time for that! They pick it when I want, leave me a Genesis or better loaner and deliver it back! You can keep the fancy dealerships. Real service is when they come to you!

Now that's the royal treatment!

BillyMax a Happy Equus owner!

 

[vitacura]

In the Tampa Bay area Hyundai's 2 Equus dealerships are nowhere near high income areas or in Tampa or St Pete or Clearwater. They are in lower income more rural areas where locals buy Hyundais because they are cheap cars. I know Hyundai has to reward its high volume dealers but they have no dealerships near the buyers of MB's, BMW's, Lexus et al who the target market for the Hyundai Equus.

I know Hyundai of New Port Richey is one of them, which is the other? The NPR dealership is the largest in the southeast in regards to volume and pretty accessible from Tampa.

 

[BacktoHyundaibychoice]

254 sold in January, regardless of Internet opinions as to how they should do it.
I don't have the numbers yet, but I suspect that was more than some of the competitors.
Affordable luxury may be worth more than a free latte? Rubbing elbows with Sonata buyers worth it to achieve luxury without pretension?
Time will tell, but I'm pretty sure they're happy so far.

 

[Billymax]

Well its been two months since I picked up my Equus and having owned BMW, Mercedes and Caddy's the experience has been outstanding. The pickup service, free hand wash every time I stop in the dealership and value for the money to me is a winner. As far as prestige is concerned with the Equus vs. the others who cares! When I tell the Golfing buddies at the club that i paid my club dues for three years on the savings and they see the car the prestige that is perceived to be missing just disappears! The Car's great, service is outstanding and when I want to feel important I stop back at the dealership and they make me feel like the top dog. Besides having the Hyundai Senata and Genesis owners come gawk at my car is kind of fun!

Ron Marhoffer of Green, Ohio's dealership is a showplace, new clean and very comfortable. As far as a fitness room and Lotte I can get both of them at my club instead of waiting for my car to be fixed!

Sorry guys this junk is just lame!